The majority of California’s job losses and gains in recent decades are "homegrown”—that is, they take place in locally owned and operated businesses. This update shows that only a small fraction of the state’s job losses are caused by businesses leaving the state. Relocation accounts for a smaller share of job gains and losses in California than in most other states, in part because most California businesses lie far from the border of neighboring states.

This report was supported with funding from the David A. Coulter Family Foundation.